mjc2021 said:
1. Cheaper
2. Cheaper a for a large library of basically the same 3rd party games.
3. MS published games typically sell equally and better than Sony games.
4. When PS3 price drops, 360 can drop even more.
5. XBox Live has already generated over a billion dollars and it continues to grow.
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I'm not going to state which console will have more longevity, because - well - I don't know.
However, only one of the five you listed provides a solid argument, while a couple even seem to support the opposing viewpoint.
I'll address them (Excluding 2 as it's a very similar argument to 1, and 3 as it doesn't support either stance):
1. Cheaper
True, the 360 is cheaper, and will likely remain so. Why will this prolong the shelf-life of Microsoft's system? Wouldn't it make more sense, logically, that the more expensive system would last longer, assuming it receives consistent price reductions and remains viable in the public conscious (As the PS3, thus far, has)?
Past this, a systems longevity will likely rest solely on how long the public supports the system, price aside (Example: PS2 has just now been reduced to $99). So really, this argument could go either way, and entirely depends on other factors (Which, of course, renders this lengthy reply mostly useless, but I'm bored).
4. When PS3 drops [price], 360 can drop [its price] even more.
This is simply untrue. Hypothetical scenario (As we love those): The PS3 drops its price at retail to $299 from it's current, and lofty, $399. The 360 Arcade model currently sits at a low $200. Can Microsoft afford to drop that price to counteract Sony's reduction? Quite possibly. Can it afford to drop its price a massive $100, or even half that? Highly unlikely, unless Microsoft is willing to sacrifice profitability.
5. XBox Live has already generated over a billion dollars and it continues to grow.
This is really the only reason that logically supports your argument, as it provides a great source of revenue Microsoft can lean on in the coming years. Hey, one out of five ain't bad, eh?